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Study: Miami Apartment Demand Exceeding New Supply, Causing Price Increases

Miami’s population boom means that demand for apartments in Miami has been outpacing supply, leading to price increases, according to a new study cited by the Herald.

The Harvard Joint Center for Housing Studies study showed that over 50,000 units high cost units (priced above $2,000) were added to the Miami market in the past 10 years alone, an increase of 148 percent.

At the same time, 20,000 low cost units (priced below $800) were removed from the market, a decrease of 13 percent. Miami now ranks third in the U.S. for having the lowest percentage of low cost rental units.

New supply isn’t projected to meet new demand, which could cause further price increases.  Based on current construction, Miami is on track to add about 70,000 new units by 2030, but at the current rate of demand the area needs 185,414 new units to keep pace.

 

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35 Comments on "Study: Miami Apartment Demand Exceeding New Supply, Causing Price Increases"

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Anonymous
Anonymous

As an Architect, it is great to see the city I once called home (born and raised) grow into a metropolis. It is sad, however, that Miami has become a rich man’s city. There is virtually no middle class, the transportation system is comical and the school system is complete garbage.

Anonymous
Anonymous

Plenty of middle class.. but luxury towers on the water and not for the middle class.. same as any other major city.

Anonymous
Anonymous

Except other major cities have higher salaries. $500k gets you a small 2000 SF home in suburban Miami vs a 3600 SF home in suburban Atl. A comparable city to Miami in size and population.

Anonymous
Anonymous

Atlanta is a poster child for an urban sprawl, Miami is one of the densest cities in the USA. There is no comparison between the two. Dense cities are always pricier. Add the beaches and the ocean, and Atlanta doesn’t hold candle to the Magic City.

Anonymous
Anonymous

in some respects, yes atlanta has a problem with sprawl. over the last few years however the growth and gentrification of “in-town” neighborhoods is something that just does not happen in miami. In atlanta it is very common for young couples to purchase older homes and rehab. this happens almost exclusively “in-town”. In Miami you hardly ever hear of someone buying up a bungalow in little havavna and renovating it and bringing up the neighborhood with it. I find it very strange that the vast majority of the young professionals here almost exclusively purchase new housing rather than purchasing an older home and fixing it up. It really is one of the only cities in the US that doesn’t have a strong re-hab market. So i think there is somethings that Atlanta does better than Miami. and by they way they have a higher GDP than Miami.

Anonymous
Anonymous

Miami is all about Image.. people like shiny new apartments in trendy neighborhoods.. look at all the negative comments on this page about people buying in older communities like Little Havana, Overtown, Allapattah, Wynwood, etc… traditionally stigmatized neighborhoods… They call them “crappy areas”

It take foreign developers (i.e. Melo Group and others) to look past this stigma and buy land and build housing in these neighborhoods.

It takes younger people who don’t mind and buying or renting in these areas.

Anonymous
Anonymous

I just don’t know why people look towards new construction to solve the problem of affordable housing, in many ways it is counterintuitive, unless of course you are looking for affordable and subsidised but this is only for the very very poor. Go to any major city in the united states and you will find a former run down neighborhood, reinvigorated by young couples rehabbing the older homes and bringing up the neighborhood. wicker park in chicago, silver lake in LA, Cabbagetown/east Altanta in Atlanta etc.etc. There’s not one neighborhood in miami that i can think of where this happens and I’m really not sure why. I think Miami is the only major city that does not have this activity widespread. Wynwood is a perfect example, why haven’t people actually gone out and purchased some of those homes nearby and fixed them up? any other city that would have already happened after the commercial explosion that occurred there.

Anonymous
Anonymous

Urban Miami is where it’s happening in my opinion.. As an old school resident I can see gentrification is happening in Edgewater, Little Haití, Wynwood, little Havana, overtown.. but all due to developers and the city of Miami investing in infrastructure.

Anonymous
Anonymous

Yes I went to college in Atlanta and know a little about the city… it’s full of corporate headquarters that have relocated from NYC. Also ATL is comprised of about 10 counties and homes are cheaper in every direction the farther out you drive.

People that can’t afford Miami should move to Tampa or Orlando.. no point in bitching endlessly.

Suomynona
Suomynona

A “small” 2,000 sqft home?

Yohan Perez
Yohan Perez

lol suomy

Anonymous
Anonymous

I don’t know who does those reports. I live in Brickell and two years ago the average rent for a 1 bedroom in my building was $2000-2100. Now it’s more like $1750-1850. I have friends in all the buildings around, and the drop is about the same everywhere.

Suomynona
Suomynona

By using a rental price that most Miamians can’t afford as your example, you’re proving the conclusions of the study that they’re isn’t enough housing that residents can’t afford.

Anonymous
Anonymous

You’re delusional. I saw you on the other page all defensive and scared of autonomous vehicles. And now you clearly didn’t understand what this article is saying and you’re only focusing on “too expensive”. You’re probably a frustrated taxi driver who can’t afford to live in Miami lol

mondocondo
mondocondo

Don’t believe everything you read. Rents have stabilized or been falling for some time due to new supply. Cheers

From Miami
From Miami

Did you read the article?
the lower rent did increasse a lot, 2 years ago it was possible to rent for $650, the same one now is $900 !!!!!

Suomynona
Suomynona

You’re full of it. Rent most certainly isn’t going down.

Mondocondo
Mondocondo

Believe what you want. It’s not trending up in the strongest markets, and in some cases is declining. Rental increases for the first time in years aren’t sticking. New product is getting more than old product, but that isn’t an increase. Cheers.

Anonymous
Anonymous

In my admittedly non-scientific study of friends in the Brickell/Edgewater/Midtown area, many have told me over the last few months that rents have been slightly dropping. No one is being raised rent, many are remaining the same if they re-up, and a few have actually decreased.

Anonymous
Anonymous

Chew on that, haters!

Marc305
Marc305

I just wish every potential renter who calls my office would read studies like this one, maybe then they would stop making offers for $200 to $300 less than the asking price, or think there are deals to be had in the new buildings. Just in the past few months we have received many calls asking for apartments for under $2,000 at SLS Brickell, when we tell them there aren’t any they ask “are you sure? can you check again?” … as if we would hide inventory on purpose.

Anonymous
Anonymous

Maybe not at SLS Brickell because there are other perks that will keep the rent prices above other one bedrooms, but other buildings especially those built in the previous cycle will see a decline in prices.

Marc305
Marc305

From your lips to god’s ear, when rental prices go down we are able to help a lot more people then when prices are high.

Marc306
Marc306

They’re idiots for calling a real estate office in the first place. There are tons of property owners who are so easy to manipulate to get an insanely good rental deal. Half the owners don’t know what they’re doing. People need to stop being lazy and going to real estate agents (who’s comissions mean higher rental rates) and be proactive.

Anonymous
Anonymous

I agree….I rent an oceanfront condo from a private owner for less than same size apts a mile inland at apt complexes rent for….people are sheep

From Miami
From Miami

yes and those tenants and owners who they don’t know whe they are doing

Anonymous
Anonymous

The reality is that Miami is a very difficult city to truly understand because so much of our economy is hidden from traditional metrics. we have a huge “gray” unreported cash based economy that I doubt Harvard or anyone else really can fully grasp. Secondly we have a huge transient population and a large immigrant population that does not generally show up in these studies. so I believe the numbers generally skew to the lowside as compared to other american cities which make us seem more poor than we actually are.

Anonymous
Anonymous

So very true.. particularly a lot of the Miami-Dade workforce is paid in cash or 1099’s and earnings are not reported. Look at the construction industry for example. Related Group is being investigated in this scheme.

Anonymous
Anonymous

i remember when they were taking the US census back in 2010. Nobody wanted to participate and the county government had to create a media campaign to educate people that a proper census participation would benefit the area with the ability to apply for federal programs as well as additional electoral representation. This city in many ways operates outside of established norms that other cities do and there is a lot of economic activity here that goes unreported and under reported.

I.Know.Miami
I.Know.Miami

Miami is gonna be the most sought after city to live in.

Yohan Perez
Yohan Perez

OK then, Perez, can you dust off those plans for Auberge. You will sell them out. Please restart the Project.

Anonymous
Anonymous

Umm yeah, did you see the time frame? By 2030? Miami cycles are about 8-10 so there will be some ups and down before we get closer to a more stable market.

Anonymous
Anonymous

Very simple , 101 economics , demand and supply will determine rent prices ….. but also Miami , particularly the brickell wynwood corridor has different factors of influence , like new and old units , immigration and economics of foreign investing countries ….et,et….. so with the actual and future inventories prices will be stables and maybe decreasing for the next 2 years and then increasing again ……

Gringo
Gringo

like I said, time to buy….

City Commissioner
City Commissioner

You should move.

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